182 lines
6.0 KiB
Markdown
182 lines
6.0 KiB
Markdown
---
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sidebar_position: 5
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---
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# Hosting Economics (SPORE)
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This page explains how hosters earn money by contributing capacity to the grid and how **SPORE**, the ecosystem token, works.
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> Originally this content was written for *ThreeFold Farming*. Here we describe it from the perspective of **hosters** supporting the Mycelium / ThreeFold stack.
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## What is SPORE?
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**SPORE** is the native token of the ThreeFold ecosystem. You earn SPORE for providing compute, storage, and network resources as a hoster.
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### Key Facts
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| Feature | Details |
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|---------|---------|
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| **Base Price (intro period)** | $0.01 per SPORE (fixed until June 30, 2026) |
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| **After June 2026** | Price floats based on market demand |
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| **What You Earn** | SPORE tokens for capacity and utilization |
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| **Max Supply** | 10 billion SPORE (capped) |
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| **Utility** | Payment to hosters, growth of the ecosystem |
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### Why SPORE Can Appreciate
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1. **Part of every payment is burned** – reducing circulating supply.
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2. **Demand grows with adoption** – more workloads → more SPORE demand.
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3. **Scarcity + demand** – over time this can support higher prices.
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---
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## How Revenue Is Split
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When users pay for resources on your node, the payment is automatically split:
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```mermaid
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graph LR
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A[User Pays for Resources] --> B[80% to Hoster<br/>SPORE Tokens]
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A --> C[10% Burned<br/>Removed from circulation]
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A --> D[10% Mycelium / ThreeFold<br/>Development]
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B --> E[Your SPORE Balance Increases]
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C --> F[Total SPORE Supply Decreases]
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D --> G[Ecosystem & tooling improve]
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```
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### Example
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If a user spends **$10** worth of SPORE on workloads:
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| Recipient | Amount | What Happens |
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|-----------|--------|--------------|
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| **You (Hoster)** | $8 (800 SPORE) | Added to your balance |
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| **Burned** | $1 (100 SPORE) | Destroyed permanently |
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| **Development** | $1 (100 SPORE) | Funds infrastructure & software |
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Over time, the burn + demand effects help make each remaining SPORE more scarce.
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---
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## Burning and Scarcity
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Burning is simply **removing tokens from circulation forever**.
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Conceptually:
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- Without burning: supply stays flat, price tracks demand only.
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- With burning: supply decreases as usage increases → additional upward pressure on price.
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This is why long‑term hosters are incentivized to accumulate SPORE while continuing to provide capacity.
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---
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## Earnings Drivers
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Your actual returns as a hoster depend on:
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- **Capacity** – How much CPU, RAM, and storage your nodes provide.
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- **Location & reliability** – Good connectivity and uptime attract more workloads.
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- **Demand** – How many users deploy on the grid / Mycelium Cloud.
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- **Time horizon** – SPORE price is fixed during the early phase, then becomes market‑driven.
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### Rough Components of ROI
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1. **Base rewards** – Capacity made available to the network.
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2. **Utilization‑based income** – When workloads actually run on your nodes.
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3. **Token appreciation (speculative)** – If SPORE price rises as adoption grows.
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> Exact reward formulas can evolve over time. Always check the latest tokenomics and dashboards for up‑to‑date numbers.
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---
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## Managing Your SPORE
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### 1. Hold (Long‑Term Thesis)
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- Let SPORE accumulate in your wallet.
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- Benefit from potential scarcity and ecosystem growth.
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- Simple, low‑effort strategy.
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### 2. Convert Some to Stability
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- Convert a portion of SPORE to **Cloud Credits (CC)** or other units if/when available.
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- Use CC for predictable budgeting, while keeping some SPORE for upside.
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- Useful if hosting is part of a bigger business.
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### 3. Hybrid Approach
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Many hosters will:
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- Keep a core SPORE position (long term).
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- Periodically convert a portion to cover opex (power, connectivity, hardware refresh).
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---
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## Getting Started with Earnings
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### Step 1: Set Up Your Node
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Make sure your node is live and part of your farm:
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- Follow **[Set Up Your Node](/hosters/setup)** to get connected.
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- Confirm visibility in the dashboard.
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### Step 2: Monitor Utilization
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- Use the dashboard to see when and how your capacity is used.
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- Watch resource allocation, uptime, and earned SPORE over time.
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### Step 3: Iterate on Hardware & Pricing
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- Improve power efficiency to increase net returns.
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- Consider upgrading to **Edge Compute** or **Edge AI** nodes for higher‑value workloads.
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- Stay informed about any bidding / pricing mechanisms offered by the platform.
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---
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## Common Questions
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<details>
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<summary><strong>When will I start earning SPORE?</strong></summary>
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As soon as your node is online and offering capacity, you become eligible. Initial earnings typically appear within **24–48 hours** as the system starts assigning workloads.
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</details>
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<details>
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<summary><strong>Can I lose money hosting?</strong></summary>
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Hosting involves hardware and power costs. Profitability depends on utilization and SPORE value. However, baseline rewards and long‑term grid usage are designed to make serious, reliable hosters viable over time.
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</details>
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<details>
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<summary><strong>What if SPORE price changes after 2026?</strong></summary>
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After June 2026 the price becomes market‑driven. The burn mechanism and adoption are designed to support value, but token prices can still be volatile. Plan with a long‑term perspective and avoid over‑leveraging.
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</details>
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<details>
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<summary><strong>How often do I get paid?</strong></summary>
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SPORE accrues continuously and can be checked any time in your dashboards and wallets. There’s no manual payout process.
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</details>
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---
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## Additional Resources
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- **Community Forum** – [forum.threefold.io](https://forum.threefold.io)
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- **Farming / Hosting Manual** – [manual.grid.tf/farmers/intro](https://manual.grid.tf/farmers/intro)
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- **Community Chat** – [t.me/threefold/1](https://t.me/threefold/1)
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---
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:::tip Ready to Start Earning?
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If you haven’t already, finish the **[Setup Guide](/hosters/setup)** and make sure your node is online. From there, SPORE rewards start accumulating automatically as the network uses your capacity.
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:::
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